The "FNGU stock price" is reflecting macroeconomic factors such as lowering Treasury yields and upbeat consumer sentiment. Such conditions tend to lift growth-focused ETFs, making FNGU an attractive short-term speculative play. Wall Street has been enjoying a strong rally this year, defying slowdown fears, geopolitical tensions and the steep decline in “Magnificent Seven” stocks. The S&P 500 and the Dow Jones hit a series of new all-time highs and topped 5,700 and 42,000 milestones, respectively. The Nasdaq Composite Index is hovering near the 18,000 level. Most of the optimism is driven by rate cuts. This has resulted in a huge demand for leveraged ETFs as investors look to register big gains in a short span. We have highlighted a bunch of the best-performing leveraged equity ETFs that have gained more than 70% in the first nine months of 2024. These include T-REX 2X Long NVIDIA Daily Target ETF NVDX, ProShares Ultra Semiconductors USD, Direxion Daily Utilities Bull 3X Shares UTSL, BMO REX MicroSectors FANG+ Index 3X Leveraged ETN FNGU and MicroSectors Gold 3X Leveraged ETN SHNY. These funds seek to register big gains in a short span and will continue their strong trend, at least in the near term, provided the sentiments remain bullish. Leveraged ETFs provide multiple exposures (2X or 3X) to the daily performance of the underlying index. These funds employ various investment strategies, such as the use of swaps, futures contracts and other derivative instruments to accomplish their objectives. The technology sector was the outperformer in the first half but rate-cut optimism led to sector rotation in the third quarter. Investors shunned hot technology stocks in favor of smaller companies and the cyclical sectors, which are bigger beneficiaries of Fed rate cuts (read: 5 Sector ETFs Scaling New Highs on Fed Rate Cuts). After all the speculation, Federal Reserve Chair Jerome Powell finally kicked off the new rate cycle era by initiating a 50 basis points cut in interest rates last week after holding it at a 23-year high for 14 consecutive months since July 2023. This marked the first rate cut since 2020 to address slowing economic growth and showed greater confidence in the fact that inflation is moving sustainably toward the 2% target level. Lower rates lead to reduced borrowing costs for mortgages, credit cards and other consumer and business loans. These help businesses expand their operations more easily, resulting in increased profitability. This, in turn, stimulates economic growth and boosts the stock market. CSX Stock Rally: Strong Options Flow, Analyst Price Targets Chart watchers note that the "FNGU stock price" is trading within a well-defined upward channel on weekly timeframes, hinting at sustained growth if macro trends support tech-heavy portfolios.